Country Analysis Note

Germany was the largest energy consumer in Europe and the eighth-largest energy consumer in the world in 2012. It was also the fourth-largest economy in the world by nominal gross domestic product (GDP) after the United States, China, and Japan in 2012. Its size and location give it considerable influence over the European Union's energy sector. However, Germany must rely on imports to meet the majority of its energy demand.

Petroleum and other liquids continue to be Germany's main source of energy, making up 37% of the country's total primary energy consumption in 2012. The transportation sector makes up the majority of petroleum product demand, although the government's 2010 "Energy Concept" publication advocates for one million electric vehicles on the road by 2020 and six million by 2030.

With more than 2.2 million barrels per day of crude refining capacity, Germany is one of the largest refiners in the world, and the second largest in Europe and Eurasia after Russia. Germany imports oil through four crude oil pipelines and one petroleum product pipeline, as well as four main sea ports. The country's sole deepwater port at Wilhelmshaven handles a large portion of Germany's international oil trade.

Germany has no liquefied natural gas (LNG) terminals, so the country must import natural gas exclusively through several major cross-border pipeline networks. Almost all natural gas imports come from Russia via the Nord Stream system (completed in 2011), Norway via Norpipe and Europipe systems, and the Netherlands via four main pipelines. Natural gas consumption in Germany has declined from its peak of nearly 3.6 trillion cubic feet (Tcf) in 2003 to 3.1 Tcf in 2012, largely because of energy efficiency improvements.

Germany was the fifth-largest generator of nuclear energy in the world in 2012 with 94.1 terawatthours, a decrease from 102.3 terawatthours generated the previous year. Following Japan's Fukushima accident in March 2011, the German government decided to close eight reactors launched before 1980 because of public protests and to close Germany's nine remaining nuclear reactors before 2022.

Coal is Germany's most abundant indigenous energy resource, and it accounted for about 24% of Germany's total primary energy consumption in 2012, a slight increase over the previous few years. Coal consumption increased after Japan's Fukushima reactor accident occurred in March 2011, and Germany used coal as a substitute for nuclear power in electricity generation. Germany was the world's eighth-largest producer of coal in 2012. Nearly all coal production serves the power and industrial sectors.

Germany is a regional and world leader on several categories of renewable energy use. In 2012, Germany was the largest European producer of non-hydro renewable electricity, with the largest sources being solar and wind. The German government stated that it will continue to shift from nuclear power to renewable energy sources.